Natural gas surges in 2024 driven by Permian growth

The United States closed 2024 with a noticeable increase in associated natural gas production,up 6% compared with the previous year, according to EIA.

This rise followed the same trend seen in crude oil output, especially in the Permian Basin, which continues to be the engine of U.S. hydrocarbon growth. 

Data from Enverus DrillingInfo show that associated gas reached an average of 18.5 billion cubic feet per day (Bcf/d) last year.

But what exactly is associated natural gas?

It’s the gas that comes out of wells designed mainly to extract oil. 

When oil flows from a reservoir, natural gas often comes with it, dissolved or trapped in the formation. 

This is different from dry gas wells, whose primary target is gas rather than oil. 

The distinction is typically based on the gas-to-oil ratio (GOR): oil wells produce 6 thousand cubic feet of gas per barrel of crude or less; anything above that is considered a gas well.

The regions driving growth

Five major oil provinces dominate associated gas production in the U.S.:Permian, Bakken, Eagle Ford, Anadarko, and Niobrara.

Together they averaged 18.2 Bcf/d of associated gas in 2024,1 Bcf/d more than in 2023, meaning associated gas made up about 37% of all natural gas produced in these basins.

The Permian Basin, stretching across western Texas and southeastern New Mexico, accounted for the bulk of the increase. 

Associated gas there rose 8%, reaching 12.5 Bcf/d, and represented nearly half of all natural gas produced in the region. 

Strong oil prices, West Texas Intermediate (WTI) averaged $77 per barrel—kept drilling activity high, which in turn pushed both crude and associated gas production upward. 

The Permian added 377,000 barrels per day of oil output in 2024, almost the entirety of the nation’s crude oil growth.

In the Bakken, associated gas represented an impressive 67% of total gas output, the highest share among the five regions. 

The basin produced 2.3 Bcf/d, while the Eagle Ford contributed another 1.8 Bcf/d.

Natural gas surges in 2024 driven by Permian growth

Why associated gas matters

Associated gas is often referred to as “wet gas”, because it contains liquids such as ethane, propane, and butane. 

These components must be processed before reaching the market, but they are extremely valuable to the plastics, petrochemical, and fibers industries. 

The continued expansion of associated gas in 2024 helped push U.S. ethane production to record levels, reinforcing the country’s role as a major supplier of petrochemical feedstocks.

In simple terms: as long as U.S. oil production continues to rise, especially in regions like the Permian, the flow of associated natural gas, and the valuable liquids it contains, will keep shaping the North American energy and petrochemical landscape.